But an additional cost is also imposed by the companies for such an option to be availed. On the other hand major medical insurance is a type of insurance in which the company guarantees to pay the expenses which are not even covered by the basic health insurance. In other words where basic health insurance fails to cope up, the major medical insurance takes over. In such type of insurance the coverage provided is not complete but on the other hand coinsurance payments and deductibles are provided. These coinsurance payments and deductibles help to lower the expenses of the policy holder.
However certain conditions may be levied while these incentives are provided. For example the payment of services beyond basic health insurance would be lowered down to 20% of the whole cost whereas the rest 80 would be covered by the company itself. Moreover such a policy also includes the stop-loss provision which would make sure that the policyholder does not have to pay after reaching a certain limit. After reaching this limit the company would be liable to pay the total expenses. This shows that each different health insurance policy has its own plus points.
A closer understanding of these health insurance methods can clearly tell a person which health insurance plan suits them the most and which plan to opt for. These plans relieve the financial burden that a person might fact when he may be exposed to sudden medical issues. Health insurance has also been taken up as an important part of governments. The governments to ensure the well being of the citizens have introduced many plans with regard to their health care.
The health insurance plans of the government of United States will help to have a closer analysis and understanding of the importance of health insurance. The government sponsored plans in the United States can be divided into two categories, firstly the state plans and secondly the federal plans. The state plans are for work related mishaps and illness of the workers as per the state workers compensation law. And federal plans include schemes such as Medicare and Medicaid. The workers compensation was seen as a necessity in the early 1900s during the time in which the number of workers rose to a great extent.
As work related accidents were more common in those days it was seen as a necessity by the government to introduce such plans. These laws come under the jurisdiction of states and thus it depends on the states solely as to which workers are provided with such insurance.
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